Royal Bank of Canada’s institutional asset management business, run by RT Capital Management Inc., is to be acquired by UBS-AM for C$350 million, subject to certain conditions. The transaction is expected to close by September 30, 2001, pending regulatory approvals.

RT Capital will be renamed Brinson Canada upon closing, complementing the Brinson Partners and Brinson Advisors brand names used by UBS-AM in the Americas. Brinson Canada will continue under the leadership of chairman and CEO Michael Wilson. Wilson, who served as Canada’s federal Minister of Finance from 1984 to 1991, will report to Benjamin F. Lenhardt Jr., head of UBS-AM in the Americas, and president and CEO of Brinson Partners.

“RT Capital is an ideal addition to UBS Asset Management’s investment capabilities in the Americas,” said Lenhardt. “The two organizations are an excellent cultural fit, both having the same client-focused organizational structures and similar fundamental-based investment philosophies. Canadian clients will see no change in investment processes and RT Capital will continue to manage its Canadian client relationships. RT Capital’s market leadership position in Canada, UBS Asset Management’s global investment platform, as well as our institutional and wholesale expertise in the U.S. translate into broader investment and distribution capabilities for all Canadian plan sponsors.”

Putnam Lovell Securities Inc. and RBC Dominion Securities acted as advisors to RBC in the transaction, and UBS Warburg acted as advisor to UBS Asset Management.